Show 0 0 national topics interpreted by william bruckart national press pre building D CL washington wall street and the securities market generally have been undergoing a had bad case of bad casa case of the jitters jitters it has been several years since those dealing in money and shares of stock have been so uncertain as to the future and this uncertainty obviously is the cause of the jitters among all people who dabble in the stock market whether the dabbling be small or large on margin or for or cash it seems a proper tune time therefore to examine the picture and try to see what lies beneath and let me hasten to say at the very outset that anyone who makes a positive statement about the securities market these days must be either a fool or a superman and thus far the su who have lived on this earth number only one but that fact does not destroy the value ot of an examination of a condition which exists as a fact indeed I 1 think a review of the various factors and influences at work now can provide a clarification of general conditions even though it may fail utterly to show why men and women act as they do with respect to stock market investments first it should be said that wall street as the term Is commonly used is not unanimous within itself the violent fluctuation of market securities in the last several weeks might easily be said to be due to the war crises in europe and la in the far east only those fluctuations are not traceable to war conditions dit ions rather the war conditions are used by some individuals as an excuse an alibi to themselves because they tail fail to fathom the various influences and factors now at work I 1 said that wall street lacked unanimity within itself that is true because within wall street there are all kinds of selfish groups operating for example an influence like inflation is highly pleasing to the brokers and deal dealers ersin in shares while the same influence frightens bankers and likewise gives a sic sickening feeling to those who must buy raw products bankers and sound investors as well as tax payers generally would be quite happy to see the federal Treas budget balanced because if that were done there would be a much greater sense of security of safety for those stock market investments I 1 A dozen other illustrations could be given to thus illustrate the point and show why black blach case wall street can involved not agree they do not show however why there is so much uncertainty and why the bulls or the bears have been unable to adjust themselves to the future probabilities the reasons therefore must lie deeper it is possible that the appointment of hugo black of alabama as an associate justice of the supreme court of the united states slates has had more effect on the business world than any of us realize I 1 have heard a number ot of corporation po ration executives say that they hope they will never be involved in litigation which will carry their corporations po rations before the court on which mr black sits it they entertained that tear fear belore before undoubtedly the fear is deeper seated and more widespread now that mr justice black has been publicly accused of holding a life membership in the ku klux flux klan certainly the expose of the typhoon that is swirling around the head of the new associate justice cannot have any soothing effect upon the minds of those business men who as corporation executives are trustees of vast sums of the peoples money undoubtedly unless mr black can prove that he is not affiliated with the ku klux klan tew few litigants will leel sate safe before the supreme supreme court then there comes the resignation ot of james M landis as chairman of the securities and exchange commission which regulates operations of the great stock exchanges mr landis has been regarded as rather fair rather just in his dealings relating to stock market operations ills his retirement to cretu return rn to a professorship fessor ship in harvard of 0 course opens up the question as to his successor this is to say that most of 0 the financial world is hoping and preying praying that the new chairman will not go off at a tangent that he will avoid extreme radicalism and that he will not blame the whole financial structure tor for the crookedness of a part of it thus thur it becomes easy to see how this minor factor may have weight with some individuals dealing in cor corporate parate shares and bonds william wilam am 0 douglas a member of the has been slated to become chairman but developments in recent weeks give considerable doubt over that result mr douglas Is recorded as being a radical bankers and investors in many parts ot of the country tear fear that it if he is made chairman he will become not unlike the famous bull in a china cabinet but according to the undercurrent der current ot of gossip around wash ington ancton mr douglas has done some thing to offend postmaster GL general farley and no man can draw an appointment as important as the chairmanship of a great commission without mr Far parleys leys approval aside from rom personalities various phases of president Roosevel ts monetary policies continue to be disturbing and in addition to these there is the certainty that new taxes must be levied that Is new taxes must be levied if we are ever going to balance the federal budget and begin paying off the gigantic national debt which now amounts to more than 38 billion with a debt at the highest point our united states ever has known a great many people including bankers have become tearful fearful ot of what they might get for united states bonds that they now hold it is obvious that this influence adds to the general uncertainty although it is difficult to measure the exact influence of 0 this condition or to see whether it is a major or a m minor inor factor 0 0 0 having enumerated a few ot of the influences known to be at work we come now to that business condition which conditions heretofore always has been basic I 1 refer to general business conditions new deal press agents have tried valiantly to make it appear that business is booming that prosperity is here instead of around the corner and that the country has nothing to fear careful examination of official figures however show the prosperity statements to be true only in parts the official statistics disclose very definitely how some lines ot of business are enjoying a volume of trade or production higher even than 1929 they show on the other hand a vast number of failures an increasing number of big businesses which are barely getting by which can continue providing their present volume of business is maintained it if the volume of business slips however that category of business is going into a tailspin as sure as the sun shines it if a part of the business of the country begins to sink well a part of it began to sink in august 1929 and within two years the whole structure had fallen like a house of cards I 1 am not saying that we are confronted with another depression I 1 do say however that we are facing a condition that is not at all satisfactory a condition that can lead to a depression as easily as it can lead to sound prosperity in commerce and industry astute observers and business men in the larger centers decide their courses upon the outlook for the whole country not tor for any particular line ot of business or any particular section the number ot of individuals divi duals who see the picture I 1 have attempted to outline in the above paragraph is increasing As that number increases obviously the wave 0 of uncertainty expands so if one is compelled to make a guess why wall street is so concerned or so jittery it would seem that the explanation must lie in the combination of 0 circumstances no one ot of them except possibly the adverse business outlook could accomplish com as much doubt about the future anyone talking with a hundred different individuals will hear bear these various factors and influences mentioned ile he will hear different weight given by each individual to each factor 0 0 we have been dealing with causes let us look at possible effects it will be kemem now as bared how pres to effects dent hoover was blamed tor for the de pr eVion he and the republican party were punished on that account and badly licked in the elections it ought to be said in mr hoovers behalf that the conditions which led to the depression had their beginning long before lie he was elected president indeed they had their real beginning in the world war president roosevelt came into office as a result ile he started doing things and gaining the confidence of the country to such an extent that he was reelected elected re last year probably he was reelected elected re largely because of the bulk of the voters feeling he was restoring prosperity I 1 doubt however that mr roosevelt was any more responsible for the return of a superficial prosperity than mr hoover was responsible tor for the depres depression slon but we are coming to another election it if conditions should become worse and business should decline perceptibly again mr roosevelt will be held responsible just as definitely as was mr hoover lie he will be charged with having made a mess of government and any attempt on his part to prove the condition was natural will be regarded as an alibi the whole thing seems to be in the lap ot of uie the gods and no amount ot of political strategy or a attempts to amend the law of supply and demand will alter events 0 western newspaper union |